Ex-hand surgeon Brown changes his mind on bankruptcy

Updated 3:44 pm, Wednesday, February 27, 2013

Photo: Andrew Richardson, Staff

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Former hand surgeon Michael Brown exits the courtroom for the 309th District Court on Wednesday, Nov. 16, 2011, in Houston. Brown appeared in court regarding a civil dispute with Rachel Brown, his fourth wife, who is currently engaged in ongoing divorce proceedings with Brown. ( Andrew Richardson / Houston Chronicle )

Former hand surgeon Michael Brown exits the courtroom for the 309th District Court on Wednesday, Nov. 16, 2011, in Houston. Brown appeared in court regarding a civil dispute with Rachel Brown, his fourth wife,

Rachel Brown, left, estranged wife of former hand surgeon Michael Brown walks to the courtroom for a hearing Friday, Oct. 21, 2011, in Houston. Less than a month after being acquitted for domestic violence, Michael Brown, the former hand surgeon is fighting a protective order that was agreed to last year. Brown, who is involved in a divorce from his estranged wife, Rachel Brown, is prohibited from communicating with his wife or their three children, according to the 2010 order. Arguments to lift the order were reset for a later date. ( Brett Coomer / Houston Chronicle ) less

Rachel Brown, left, estranged wife of former hand surgeon Michael Brown walks to the courtroom for a hearing Friday, Oct. 21, 2011, in Houston. Less than a month after being acquitted for domestic violence, ... more

Photo: Brett Coomer, HC Staff

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Criminal defense attorney Dick Deguerin, left, with client Michael Brown, and criminal defense attorneys Catherine Baen, and Brian Wice, right, as they talk to the media as they leave the courtroom after Brown was found not guilty of assault in trial at the Harris County Criminal Justice Center, 1201 Franklin, Tuesday, Sept. 20, 2011, in Houston. Brown, a former hand surgeon, was accused of assaulting his fourth wife, Rachel Brown, last year in their Memorial-area mansion. ( Melissa Phillip / Houston Chronicle ) less

Criminal defense attorney Dick Deguerin, left, with client Michael Brown, and criminal defense attorneys Catherine Baen, and Brian Wice, right, as they talk to the media as they leave the courtroom after Brown ... more

Photo: Melissa Phillip, Staff

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The Browns, shown in 2009, were fixtures on the Houston social scene. Rachel Brown, Michael Brown's fourth wife, accused him of twisting her arm during a screaming, swearing confrontation in 2010. He was later acquitted of charges. With their children, the two starred in commercials for Brown's Hand Center.

The Browns, shown in 2009, were fixtures on the Houston social scene. Rachel Brown, Michael Brown's fourth wife, accused him of twisting her arm during a screaming, swearing confrontation in 2010. He was later

Michael Brown stands in the courtroom during a hearing Friday, Oct. 21, 2011, in Houston. Less than a month after being acquitted for domestic violence, the former hand surgeon fought a protective order that was agreed to in 2010. Brown was prohibited from communicating with his wife or their three children, according to the 2010 order. Arguments to lift the order were reset for a later date.

Michael Brown stands in the courtroom during a hearing Friday, Oct. 21, 2011, in Houston. Less than a month after being acquitted for domestic violence, the former hand surgeon fought a protective order that

Michael Brown swears in during a hearing Friday, Oct. 21, 2011, in Houston.

Michael Brown swears in during a hearing Friday, Oct. 21, 2011, in Houston.

Photo: Brett Coomer, Houston Chronicle

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Michael Brown, left, leaves the courtroom surrounded by supporters.

Michael Brown, left, leaves the courtroom surrounded by supporters.

Photo: Brett Coomer, Houston Chronicle

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Former hand surgeon Michael Brown bows his head on the stand during a divorce trial with estranged wife Rachel Brown in the 309th Court of the Harris County Family Law Center Tuesday, May 15, 2012, in Houston. (Cody Duty / Houston Chronicle) less

Former hand surgeon Michael Brown bows his head on the stand during a divorce trial with estranged wife Rachel Brown in the 309th Court of the Harris County Family Law Center Tuesday, May 15, 2012, in Houston. ... more

Photo: Cody Duty

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Michael Brown was found not guilty of assaulting his wife in September.

Michael Brown was found not guilty of assaulting his wife in September.

Wearing a jail jumpsuit after being arrested, Brown testifies in family court on March 5, 2013. He was arrested for contempt after missing a divorce proceeding.

Wearing a jail jumpsuit after being arrested, Brown testifies in family court on March 5, 2013. He was arrested for contempt after missing a divorce proceeding.

Photo: Mayra Beltran, Houston Chronicle

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Ex-hand surgeon Brown changes his mind on bankruptcy

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Michael Brown, the former Houston hand surgeon in the midst of multiple legal battles, filed a motion to dismiss his bankruptcy claim only a month after it was filed.

Brown filed under Chapter 11 on Jan. 23 in a Miami federal court, records show. He is embroiled in a high profile divorce with his estranged wife, Rachel Brown, was recently accused of choking a flight attendant and is in the middle of a lawsuit filed by a team of doctors, who are connected to him and his businesses.

The motion to dismiss filed Feb. 24 contends that Brown was misled to believe reorganization under Chapter 11 would help bring a close to "divorce-related issues." His new attorneys also argue that filling such a petition "endangers the business and leaves it vulnerable" to a small group of doctors and former president of the company, who are also involved in a legal dispute with Brown.

Brown has been a prominent member of the Houston social scene. He is credited with inventing a surgical technique to help carpal tunnel syndrome. He has now franchised six surgical centers located in Houston, San Antonio, Phoenix, Las Vegas, Austin and Dallas and about 15 clinics, all run by the Brown Medical Center, Inc.

A group of so-called "breakaway doctors" in the motion and Brown have been involved in a lawsuit for about a year. Their petition states that Brown's company owes millions in unpaid bills while the surgeon made million-dollar purchases of real estate and two yachts. Various media outlets reported that bought an $8 million beachfront property in Miami before filing for bankruptcy. Brown's motion to dismiss states that his companies in that case are estimated to be valued in the millions of dollars.

The motion to dismiss claims that before "an unfortunate stream of bad press releases, articles and news stories" about his divorce, the surgical centers and clinics earned $25 million to $30 million a year. The document claims that as a result of the divorce, the income from these businesses has been reduced significantly.

Charles Cave, chief financial officer of Brown Medical Center, testified that the income has been reduced by 25 percent compared to last year and that Brown paid an average of about $300,000 a month to his estranged wife and her attorney for the past two years, according to the document.

The document states that Brown also pays mortgages and upkeep for at least three separate properties where Rachel Brown currently lives, plus a lakefront property.